The Dalian Commodity Exchange is currently the only Chinese exchange offering iron ore futures contracts. (Image from archives)

BEIJING, April 13 (Reuters) – China will allow foreign investors to trade in domestic iron ore futures markets starting on May 4, the country's securities regulator said in a news briefing on Friday.

The Dalian Commodity Exchange is currently the only Chinese exchange offering iron ore futures contracts.

Iron ore futures are the second Chinese commodity derivatives market that has been opened to overseas investors after the crude oil futures contract offered by the Shanghai Futures Exchange that started trading last month.

China is the world's biggest consumer of iron ore, the raw material for manufacturing steel. The country is also biggest steel producer globally.

In February, Dalian issued draft rules to guide foreign investors for participating in the market.

The Dalian Exchange did not immediately respond to requests for a comment on the CSRC announcement when contacted by Reuters.